Recently, some institutions said that according to the data of Qichacha, in 2023, 10,900 chip-related enterprises in China have been cancelled and revoked. That's an average of 30 companies a day that will fall in 2023.
But at the same time, although 10,900 chip companies have fallen, thousands of chip companies have also been added, and by the end of 2023, there will be more than 70,000 domestic chip companies.
There are many reasons why so many companies have collapsed, but in fact, in the end, there is only one reason, that is, they can't make money, the market doesn't pay, they can't hold on, and they have to go out of business.
In fact, some experts have announced a data before, that is, in 2023, there will be 3,451 chip design companies in China, but only 625 companies with annual revenue of more than 100 million yuan, accounting for only 18%, and more than 55% of enterprises with annual revenue of less than 10 million yuan.
55% of chip design companies have an annual revenue of less than 10 million, which is too high, and we know that the chip industry is an industry with a high threshold, large investment and long cycle.
In the field of chips, it is basically difficult to succeed, because the chip industry is heavy on accumulation and investment, so small enterprises basically do not have much competitiveness, and it is difficult to survive.
After all, a good set of chip design tools, a top-level authorization, may cost millions of dollars, such a small revenue, where is the investment, where is the competitiveness?
In addition, it is worth mentioning that the number of chip companies in China has skyrocketed in recent years, and many companies originally wanted to take advantage of the hot chips to hype, so the so-called core manufacturing of many companies may be a gimmick, either it is fake core making to cheat money, or it is in the low-end field, and everyone is crazy involution and disorderly repeated competition.
And 2022-2023 is a downward cycle of chips, many large chip companies are losing money, and small chip companies are naturally even more unable to survive, and once there is no hot money pouring in, they will have to go out of business.
Of course, with the advent of the industry bubble, so many enterprises are not completely a bad thing, rich projects can live, can not make money and can not raise money can only go bankrupt, through the market competition to survive the enterprise, can be competitive, in order to finally compete with foreign enterprises.
Survival of the fittest, old companies leaving, new companies coming, this is the "metabolism" of the industry, and this is the case in all walks of life.